#15. Do NOT Over Trade! If you're having a bad day - over trading will not guarantee you can turn that bad day into a good day! If you are having a good day - over trading will not necessarily guarantee your continued success! We have determined a maximum number of trades per day (on an average trading day) are ONLY 4! There is a trading window of about 1 1/2 to 2 hours a day for perfect "Set-Ups" and you can only squeeze in about 4 trades in this time frame. Any more and you will be doing what we call "Forcing A Trade"! Forcing trades can bring down your percentage of success and exposes you to high risk… #16. As A Day Trader Never Hold Stock(s) Over-Night! The most risky time for Day Traders is the last 15 minutes before the close (3:45 pm EST). The last hour is very uncertain for the direction of stocks but the last 15 minutes is critical. If you are Day Trading, the end of the trading day is fast approaching and you still have an OPEN STOCK DO NOT HOLD THAT STOCK OVER-NIGHT! After hours and pre-market can be very tricky so make sure you sell all open trades before close and never trade pre or after market… #17. Rookies Should Stop Trading At 11:00 am EST! Most of the easy profits are captured between 9:30 am EST and 11:00 am EST and from there on the odds say your risk is extremely high if you keep trading. For a Rookie - after 11:00 am EST should be to study and learn and NOT to trade using REAL MONEY! #18. 2 Losses = Quit! As a Rookie if you experience 2 loosing trades QUIT and wait for the next trading day! #19. One Trade On One Run! Greed again enters into this very important rule. A Rookie has a tendency to keep CHASING a stock on a NICE run up or down once they have experienced a nice profit on the first trade. If you learn nothing else from this lesson you must learn to be satisfied with one trade on one run. Example... A stock is running up, you get in and make 2 to 3 points. The stock keeps running up after you sell - you are watching and can't stand to see it move up another 5 to 20 points so you get in again - NO - NO - NO! The odds are against you this stock will keep running - be happy with that nice gain and WAIT for the next SET-UP and perfect entry point as you will learn in the Charting Lessons (remember those lessons you were suppose to study the first week in #2 of this lesson) . Sit on your hands until you understand how to read a chart - do not click that mouse - even though the stock may DOUBLE in front of your eyes ! #20. Level II Training Is A Must! If you are Day Trading make sure you understand how to read Level II before you enter a trade! #21. Holding a Stock For More Than 15 Minutes Is Risky! A truly professional Momentum Day Trader will NOT hold a stock more than 15 minutes NO MATTER WHAT! The average is from 1 to 5 minutes. If you are trading as instructed you will catch a stock in what is called a MOMENTUM MOVE and that move should ONLY last 1 to 5 minutes. If it slows this should be a signal to SELL. Those who Hold & Hope normally lose. 22. Rookies Should NOT Trade New IPOs! As a Rookie DO NOT trade or buy Internet IPOs (Initial Public Offerings) or for that matter any new IPOs!! The most dangerous stocks day trading offers are NEW IPOs. If you want a real RUSH try trading these stocks - but be ready to take a major loss for possibly thousands of dollars. You should study and practice trading IPOs for several weeks to even months before using real money! #23. Practice - Practice - Practice!